Report on the Financial Statements
We have audited the accompanying financial statements of Sanghvi Movers
Limited (the Company) which comprise the Balance Sheet as at 31 March
2013, the Statement of Profit and Loss and the Cash Flow Statement for
the year then ended, and a summary of significant accounting policies
and other explanatory information.
Management''s Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub-section (3C) of section 211
of the Companies Act, 1956 (the Act). This responsibility includes
the design, implementation and maintenance of internal control relevant
to the preparation and presentation of the financial statements that
give a true and fair view and are free from material misstatement,
whether due to fraud or error.
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor''s judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company''s preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and
the reasonableness of the accounting estimates made by management, as
well as evaluating the overall presentation of the financial
statements. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
In our opinion and to the best of our information and according to the
explanations given to us, the financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
i. in the case of the Balance Sheet, of the state of affairs of the
company as at 31 March 2013; ii. in the case of the Statement of
Profit and Loss, of the profit for the year ended on that date; and
iii. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor''s Report) Order, 2003 (the
Order), as amended, issued by the Central Government of India in terms
of sub-section (4A) of section 227 of the Act, we give in the Annexure
a statement on the matters specified in paragraphs 4 and 5 of the
2. As required by section 227(3) of the Act, we report that:
a. we have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
b. in our opinion, proper books of account as required by law have
been kept by the company so far as appears from our examination of
c. the Balance Sheet, Statement of Profit and Loss and Cash Flow
Statement dealt with by this Report are in agreement with the books of
d. in our opinion, the Balance Sheet, Statement of Profit and Loss and
Cash Flow Statement comply with the Accounting Standards referred to in
sub-section (3C) of Section 211 of the Act; and
e. on the basis of written representations received from the directors
as on 31 March 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on 31 March 2013, from being
appointed as a director in terms of clause (g) of sub-section (1) of
Section 274 of the Act.
Annexure to Independent Auditors'' Report – 31 March 2013
[Referred to in Auditors'' Report to the Members of Sanghvi Movers
Limited (''the Company'') on the financial statements for the year ended
31 March 2013] We report as follows:
1 (a) The Company has maintained proper records showing full
particulars, including quantitative details and situation of fixed
(b) The Company has a regular program of physical verification of its
fixed assets by which all fixed assets are verified in a phased manner
over a period of two years. In our opinion, this periodicity of
physical verification is reasonable having regard to the size of the
Company and the nature of its assets. No material discrepancies were
noticed on such verification during the year.
(c) Fixed assets disposed off during the year were not substantial, and
therefore, do not affect the going concern assumption.
2 (a) The inventory has been physically verified by the management
during the year. In our opinion, the frequency of such verification is
(b) In our opinion and according to the information and explanations
given to us, the procedures for physical verification of inventories
followed by the management are reasonable and adequate in relation to
the size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The
discrepancies noticed on verification between the physical stocks and
the book records were not material and have been properly dealt with in
the books of account.
3 (a) The Company has not granted any loans, secured or unsecured, to
companies, firms or other parties covered in the register maintained
under Section 301 of the Act.
(b) The Company has availed unsecured loans from three parties covered
in the register maintained under section 301 of the Act. The maximum
amount outstanding during the year was Rs.172,100,000 and the year- end
balance of such loan is Rs.172,100,000.
(c) In our opinion, the rate of interest and other terms and conditions
on which the aforesaid loans have been taken are not, prima facie,
prejudicial to the interests of the Company.
(d) In the case of the aforesaid loans, there was no principal amount
repayable during the current financial year. The Company has been
regular in repayment of interest as per the terms of the agreement.
4 In our opinion and according to the information and explanations
given to us, and having regard to the explanation that purchase of
certain items of inventories and fixed assets are for the Company''s
specialised requirements and similarly certain services rendered are
for the specialised requirements of the buyers and suitable alternative
sources are not available to obtain comparable quotations, there is an
adequate internal control system commensurate with the size of the
Company and the nature of its business with regard to purchase of
inventories and fixed assets and with regard to the rendering of
services. The Company''s activities do not involve sale of goods. In our
opinion and according to the information and explanations given to us,
there is no continuing failure to correct major weaknesses in internal
5 In our opinion, and according to the information and explanations
given to us, there are no contracts or arrangements the particulars of
which need to be entered into the register maintained under Section 301
of the Act.
6 The Company has not accepted any deposits from the public.
7 In our opinion, the Company has an internal audit system commensurate
with its size and nature of its business.
8 The Central Government has not prescribed the maintenance of cost
records under section 209 (1) (d) of the Act, for services rendered by
9 (a) According to the information and explanations given to us and on
the basis of our examination of the records, the Company has been
regular in depositing undisputed statutory dues including Provident
Fund, Employees'' State Insurance, Income tax, Wealth tax, Sales tax,
Service tax, Customs duty and other material statutory dues during the
year with the appropriate authorities. As explained to us, the Company
did not have any dues on account of Investor Education and Protection
Fund and Excise duty.
According to the information and explanations given to us, no
undisputed amounts payable in respect of Provident Fund, Employees''
State Insurance, Income tax, Wealth tax, Sales tax, Service tax,
Customs duty and other material statutory dues were in arrears as at 31
March 2013 for a period of more than six months from the date they
(b) According to the information and explanations given to us, there
are no dues of Income tax, Sales tax, Wealth tax, Service tax and
Customs duty which have not been deposited with the appropriate
authorities on account of disputes other than those stated below:
Name of the Nature of the Amount(Rs Amount paid
statute dues in lakhs) under
(Rs in lakhs)
Income Tax Act, Income tax
Income Tax Act, Income tax 498.07 381.46
Gujarat Value Sales tax demand 124.75
Added Tax Act, on crane hiring
Gujarat Motor RTO tax under 44.46
Vehicles Act, Gujarat Motor
1989 Vehicles Act
NAME Period to which Forum where
the amount dispute
relates is pending
Income Tax Act, 2007-2012 Commissioner of
Income Tax -
Income Tax Act, 2008-2010 Commissioner of
Income Tax -Pune
Income Tax Act, June 2008 to Gujarat Value
March 2009 Added Tax Tribunal
Income Tax Act, N.A. Gujarat High
10 The Company does not have any accumulated losses at the end of the
financial year and has not incurred cash losses in the current
financial year and in the immediately preceding financial year.
11 In our opinion and according to the information and explanations
given to us, the Company has not defaulted in repayment of dues to its
bankers. The Company did not have any outstanding dues to any financial
institutions or debenture holders during the year.
12 The Company has not granted any loans or advances on the basis of
security by way of pledge of shares, debentures and other securities.
13 In our opinion and according to the information and explanations
given to us, the Company is not a chit fund/ nidhi/mutual benefit
14 According to the information and explanations given to us, the
Company is not dealing or trading in shares, securities, debentures and
15 In our opinion and according to the information and explanations
given to us, Company has not given any guarantees for loans taken by
others from banks or financial institutions.
16 In our opinion and according to the information and explanations
given to us, the term loans taken by the Company have been applied for
the purpose for which they were raised.
17 According to the information and explanations given to us and on an
overall examination of the Balance Sheet of the Company, we are of the
opinion that the funds raised on short-term basis have not been used
for long- term investments.
18 According to the information and explanations given to us, the
Company has not made preferential allotment of shares to
companies/firms/other parties covered in the register maintained under
section 301 of the Act.
19 The Company did not have outstanding debentures during the year.
20 The Company has not raised any money by public issues during the
21 According to the information and explanations given to us, no fraud
on or by the Company has been noticed or reported during the course of
For B S R & Co.
Firm registration no. 101248W
Place : Pune Partner
Date : 27th May 2013 Membership No. 047483